Targeting Agricultural Electricity Subsidies in Haryana
Summary
The report finds that agricultural electricity subsidies in Haryana are regressive, with the wealthiest farmers receiving a disproportionate share of benefits. It suggests transitioning to solar-powered irrigation via the PM-KUSUM scheme, introducing slab-based tariffs, and improving the identification of poor farmers through inter-agency coordination.
Key insights
- Agricultural electricity subsidies in Haryana are regressively distributed, with the wealthiest two quintiles of farmers receiving 50% of the subsidies, while the poorest two quintiles receive 30%.
- When analyzed by landholding size, marginal farmers receive the lowest monthly subsidy (INR 647), while semi-medium farmers receive the highest (INR 950), potentially due to semi-medium farmers selling groundwater to smaller farmers.
- The adoption of solar pumps in Haryana is low, with only 4% of surveyed pump owners using solar technology, while 62% use electric pumps and 34% use diesel pumps.
- There is a significant lack of awareness regarding the PM-KUSUM scheme, with only approximately 17% of surveyed landowners having heard of it, despite 73% expressing a likelihood to participate after receiving an explanation.
- The report recommends introducing slab-based tariffs to replace flat-rate tariffs, requiring high-power users to pay higher rates to reduce the financial burden on DISCOMs and curb excessive groundwater extraction.
- To accurately identify low-income farmers for targeting, the report suggests that DISCOMs coordinate with state agencies that maintain registries for welfare schemes, such as NREGA or subsidized grain programs.
Cite the original document
- APA
- Viswamohanan, A., Sharma, S., Aklin, M., & Moerenhout, T. (2022). Targeting Agricultural Electricity Subsidies in Haryana. International Institute for Sustainable Development. https://www.iisd.org/system/files/2022-04/targeting-agricultural-electricity-subsidies-haryana.pdf
- Chicago
- Viswamohanan, Anjali, Shruti Sharma, Michaël Aklin, and Tom Moerenhout. Targeting Agricultural Electricity Subsidies in Haryana. International Institute for Sustainable Development, 2022. https://www.iisd.org/system/files/2022-04/targeting-agricultural-electricity-subsidies-haryana.pdf.
- Wikipedia
- {{cite report |last1=Viswamohanan |first1=Anjali |last2=Sharma |first2=Shruti |last3=Aklin |first3=Michaël |last4=Moerenhout |first4=Tom |title=Targeting Agricultural Electricity Subsidies in Haryana |publisher=International Institute for Sustainable Development |date=April 2022 |url=https://www.iisd.org/system/files/2022-04/targeting-agricultural-electricity-subsidies-haryana.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{viswamohanan2022targeting, author = {Viswamohanan, Anjali and Sharma, Shruti and Aklin, Michaël and Moerenhout, Tom}, title = {{Targeting Agricultural Electricity Subsidies in Haryana}}, institution = {International Institute for Sustainable Development}, year = {2022}, month = apr, url = {https://www.iisd.org/system/files/2022-04/targeting-agricultural-electricity-subsidies-haryana.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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